BIRMINGHAM, Ala., May 18, 2010 (GLOBE NEWSWIRE) -- As an ongoing effort to roll up properties into Four Star Holdings, Inc. (OTCBB:FSTH), the Company announced today that it will be operating its Real Estate Brokerage firm Four Star Realty, LLC as a subsidiary of Four Star Holdings, Inc.
Early in 2002, after successfully working together for almost a decade, Bobby Smith, Jr., Four Star's CEO, a Builder and Developer, and Fran Mize, a Real Estate Broker, began to formalize their vision of a Company which could purchase and develop land as well as build and sell the homes. This is in addition to the acquisition of Ridgefield Development (appraised approximately $10.5 million based on a Fair Market Value Discounted to a Single Purchaser) that was announced last week.
Management intends to roll up six more developments into the Company over the next 45-60 days equating to approximately $78 million in appraised value with 5,500 building lots averaging sales price of $250,000 per home. The Company's building market, according to The National Home Builders Association, speculated that the hard hit areas were the Sunbelt/coastal states which disrupted the real estate boom. During the sub prime crisis, Birmingham home pricing experienced a moderate decrease of 5% to an average home price of $145,000, reported on May 14, 2009. However, ahead of the rest of the country Birmingham recorded an early recovery in the onset of October 2009 with area home sales rising 13% and stabilizing and last month increasing 20%.
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Safe Harbor Disclosure -- This Press Release contains or incorporates by reference "Forward-looking statements," including certain information with respect to plans and strategies of Four Star Holdings, Inc. For this purpose, any statements regarding this announcement, which are not purely historical, are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including Four Star Holdings, Inc. beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and based on information available to Four Star Holdings, Inc. as of such date. There are a number of important factors that could cause actual events or actual results of Four Star Holdings, Inc. and its subsidiaries to differ materially from those indicated by such forward-looking statements.